The Iowa Insurance Commissioner, as the court appointed rehabilitator for CoOportunity Health, has determined that rehabilitation of CoOportunity Health is not possible and will ask the court for an order of liquidation. There is no expectation for additional cash inflow until the second half of 2015 and medical claims currently exceed cash on hand. This action is being taken to protect Iowans and Nebraskans to ensure that their medical providers and claims are paid by the state Guaranty Associations in Iowa and Nebraska. “Our number one priority is to the Iowans and Nebraskans impacted by this event. We want to ensure a seamless transition as possible to other coverage and avoid any gaps in coverage,” said Iowa Insurance Commissioner Nick Gerhart.
The rehabilitator anticipates filing a petition for liquidation next week. A hearing will then occur in late February and an order to liquidate the company should take effect on February 28, 2015. Iowans receiving advance premium tax credits to help pay for their insurance, need to find other coverage by March 1, 2015. After March 1st, CoOportunity will no longer be a qualified health plan and advanced premium tax credits and cost sharing subsidies to CoOportunity enrollees will stop.
In announcing this decision, Commissioner Gerhart strongly recommends that individuals obtain other coverage as soon as possible. Open enrollment continues until February 15, 2015. Employers with coverage in the group market need to work with their agent to obtain other coverage as soon as possible. Upon liquidation, groups will have 30-45 days to secure coverage.
For additional details see the General Information and FAQs posted on the Iowa Insurance Division and the Nebraska Department of Insurance websites.